Subject: File Number S7-19-07

July 24, 2008


Deliberate distortion of perception is the tool of magicians, fakirs, and naked short-sellers. Naked short sellers deliberately distort the public's perception of supply. The resulting failures to deliver are not reported to the public by your agency until the following quarter. By then, the damage has been done and the magician has moved on. It is deliberate distortion. It is fraud.

The SEC, presently perceived as no more than a blind croupier, should extend the emergency order to cover all issues and enforce a pre-borrowing requirement on all short sellers.


James R. Nielsen